WTA&M Small Business Development Center 2009 Annual Report

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T H E E C O N O M Y

S M A L L B U S I N E S S D E V E L O P M E N T C E N T E R

W e s t T e x a s A & M U n i v e r s i t y

2 0 0 9 A N N U A L R E P O R T

F r o m a L o c a l P e r s p e c t i v e

701 S Taylor, Ste 118 • Amarillo, Texas 79101

Phone: 806.372.5151 • Fax: 806.372.5261 • www.SmallBusinessDevelopmentCenter.com

A member of the Texas A&M University System

A member of Northwest Texas SBDC Region Network

April 15, 2009

To Our Clients, Partners, and Friends:

In this year’s annualreport, I thought

it would be interesting to get a loca

l perspective on

our economy and business conditions. While we know that our area has

not suffered from

the recession to the same degree as the nation, we though

t that a survey ofour clients,

partners, and friends would tell us to what degree a more positive attitude and outlook is

reflected locally. And while we expected answers that would describe better business

conditions locallythan in the rest of the nat

ion, I was still surprised by the upb

eat forecast.

Let me say here that while the survey we conducted was informational in nature and

should not be considered “scientific,” I dobelieve that it is relevan

t to our purpose.

(Those of you who read it closely will seethat a few of the results are

skewed owing to

the fact that we used only our own

in-house email list to survey.)

I invite you to look within at the real reasonfor this SBDC’s s

uccess – a local population

of entrepreneurswith vision, a “can-do” attitud

e, and a solid work ethic. When you

match those entrepreneurs up with our local array of great resource

s for economic

development, it’s no wonder our area is outpe

rforming the nation.

Sincerely,

PJ Pronger

Director

Up

SALES:How were your sales in 2009 compared to 2008?(Total revenues from all business related activities.)

Down

About the same

Not applicable

38.1%

34.5%

14.3%

13.1%answered question

skipped question840

32

RESPONSEPERCENT

RESPONSECOUNT

29

12

11

Up

COSTS:How were your costs in 2009 compared to 2008?(All costs of doing business.)

Down

About the same

Not applicable

45.2%

10.7%

32.1%


skipped question840

38

RESPONSEPERCENT

RESPONSECOUNT

9

27

10

Up

EMPLOYEES:How was your employee count at the end of 2009 compared to 2008?(Total number of full-time equivalent employees on the payroll.)

Down

About the same

Not applicable

11.9%

17.9%

48.8%


skipped question840

10

RESPONSEPERCENT

RESPONSECOUNT

15

41

18

The Landscape in 2009Just how did our local businesses fare in 2009, compared to the prior year?

TH E SURV E Y

ANNUALREP

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FINDING APPROPRIATE ASSISTANCE:Is your �nancial position today better or worse than it was at the end of 2008?(Considering your cash on hand, payables, receivables, and debt load.)

Better

Worse

About the same

41.7%

27.4%


skipped question840

35

RESPONSEPERCENT

RESPONSECOUNT

23

26

Yes

FINDING APPROPRIATE ASSISTANCE:Did the federal stimulus program help your business?(Possible examples are Cash for Clunkers, reduced fees on SBA loans, etc.)

No

6.3%

93.8%answered question 80

skipped question 4

5

RESPONSEPERCENT

RESPONSECOUNT

75

Yes

No

Undecided

72.5%

5.0%


skipped question4044

29

RESPONSEPERCENT

RESPONSECOUNT

2

9

FINDING APPROPRIATE ASSISTANCE - For "yes" responses:If you did use business services from WTAMU in 2009, did it help your business?

Finding Appropr iate Ass istanceFederal, state, and local programs are being served up to assist entrepreneurs. We wondered howhave these fared, and what the local awareness is of the programs that are available.

Entrepreneurs are keeping the economy from completely falling offthe cliff. In fact, despite these challenging times, entrepreneurs arestill starting a new company in this country at a rate of about oneper minute – 600,000 annually.

Source – The Kauffman Foundation

ANNUALREP

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RESOURCES:Which of the following business resources are you familiar with?(Check all that apply.)

3.8%

83.5%

53.2%

45.6%

answered questionskipped question

795

3

RESPONSEPERCENT

RESPONSECOUNT

66

42

36

50.6% 40

2.5% 2

19.0% 15

16.5% 13

29.1% 23

20.3% 16

6.3% 5

62.0% 49

11.4% 9

5.1% 4

6.3% 5

5.1% 4

11.4% 9

24.1% 19

3.8% 3

5.1% 4

7.6% 6

20.3% 16

New Markets Tax Credits

SBDC

WT’s Business Incubator

Entrepreneur Alliance

SBA Loan Guarantees

EDP Plus Program

West Texas Angel Network

Equitrend Capital

TPRDC

PRPC Microloans

Accion Texas

Enterprize Challenge

Emerging Technology Fund

Texas Mezzanine Fund

Prosper.com

Product Development Fund

AEDC Interest Rebate Grant

Center City Facade Grant

USDA Value Added Grant

USDA Biomass Grant

Route 66 Grant

Small Business InnovationResearch Grant

Texas Panhandle RegionalDevelopment Corp. at PRPC

Small BusinessDevelopment Center

Don Sanders was the 2009 recipient of the SBA Small Business of theYear award. Don is the owner of Sir Speedy in Amarillo, Texas. As a fullservice printing company for more than 15 years, Sir Speedy helpssmall to medium size companies grow their revenues by providingmarketing direction and execution.

ANNUALREP

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Yes

No

Not applicable

30.0%

65.0%


skipped question804

24

RESPONSEPERCENT

RESPONSECOUNT

52

4

FINANCING YOUR BUSINESSDid you look for business �nancing in 2009?

Yes

No

62.5%


skipped question2460

15

RESPONSEPERCENT

RESPONSECOUNT

9

FINANCING YOUR BUSINESSIf yes, did you get the �nancing you asked for?

answered question 17skipped question 67

Bank

Savings & LoanFriend of Family

Non-Bank Lender

Investor(s)

80.0%

26.7%

6.7%

12

0.0% 00.0% 0

RESPONSEPERCENT

RESPONSECOUNT

4

1

IF FINANCEDIf you did get �nancing, where did it come from? (Check all that apply.)

(PRPC or other government sponsored pprogram)

Funding OptionsThere has been a lot in the news about how difficult it is to fund small business. Here is what our localsexperienced:

“Opening day is March 14th, at least that is the plan, if this weather will let up longenough for us to get it ready. Thanks again for the help. Without it I’m not sure Icould have got this done given the financial conditions of today. The timing wasn’tthe best in the world, but it was too good of a deal to pass up. The only bad part isnow I have to keep work hours again!!! The service you guys provide is outstanding.They should give youmore funding.”

Jon Wolfe

ANNUALREP

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4

Increase

MARKETING:In 2009, did your marketing activities...

Decrease

About the same

Not applicable

32.1%

11.5%

52.6%


skipped question786

25

RESPONSEPERCENT

RESPONSECOUNT

9

41

3

MARKETING:Did you use Social Media to market your business in 2009?(Twitter, Facebook, etc.)

Yes

No

Not applicable

32.1%

67.9%


skipped question786

25

RESPONSEPERCENT

RESPONSECOUNT

53

0

MARKETING: If Yes to Social Media:If yes, which social media did you use?(Check all that apply.)

MySpace

Twitter

Facebook

20.0%

64.0%

96.0%


2559

5

RESPONSEPERCENT

RESPONSECOUNT

16

24

LinkedIn 36.0% 9

Other (please specify) 0

Billboards

MARKETING:In 2009, what types of marketing did you use?

TV

6.4%

15.4%

46.2%


786

5

RESPONSEPERCENT

RESPONSECOUNT

12

36Print

Direct Mail 26.9% 21

Radio 20.5% 16

Email 43.6% 34

Website 57.7% 45

Promotional Items 34.6% 27

No Marketingin 2009

9.0% 7

Other (please specify) 15

The Essent ia l HatMarketing is an essential element of a successful business and when times are bad it becomes more important thanever. Here is how area businesses used marketing in 2009:

ANNUALREP

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HEALTH CARE:Did you o�er healthcare to your employees in 2009?

Yes

No

I don’t haveemployees

34.6%

44.9%

20.5%


786

27

RESPONSEPERCENT

RESPONSECOUNT

35

16

HEALTH CARE:Do you plan to o�er healthcare to your employees in 2010?

Yes

No

I won’t haveemployees in 2010

38.5%

43.6%

17.9%


786

30

RESPONSEPERCENT

RESPONSECOUNT

34

14

Employment & HealthcareEmployer-sponsored healthcare is in for a change in the coming years; these questions reflect the thinkingof our respondents prior to any new legislation.

2010 vs. 2009:Do you believe that 2010 will be better than 2009?

Yes

No

Don’t Know

64.1%

14.1%

21.8%


786

50

RESPONSEPERCENT

RESPONSECOUNT

11

17

Comments 8

The OutlookThese results speak for themselves.

E n d o f S u r ve y

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1) David Dickerson, Assistant DirectorBilingual English/SpanishB.B.A. in FinanceLaunched two start-up businesses

2) GinaWoodward, Consulting CoordinatorExperienced in web designB.B.A. in Marketing, B.S. in PsychologySocial Media Manager

3) Julie Attebury, Senior Business ConsultantLicensed real estate brokerM.B.A. in General BusinessExperience in finance/structure offamily businesses

4) P.J. Pronger, DirectorCertified InternetWebmasterM.P.A. in AccountingThirty years of business ownership

5) Rick Palmer, Business ConsultantB.S. Industrial DistributionTwenty seven years as a constructionbusiness owner

6) Ana Ramirez, Student Assisstant

S TA F F

1 2 3

54 6

82N e w B u s i n e s s e s S t a r te d

415

N e w J o b s C re a te d

$11,733,625

N e w Ca p i t a l Fo r m e d

ANNUALREP

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Part of a nation-wide network, the SBDC is a depart-ment of West Texas A&M University in the College ofBusiness and is a member of the Northwest TexasSBDC Region.

Vision Statement – The WTAMU SBDC will be rec-ognized as the Panhandle’s resource of choice forentrepreneurs. It will be the most professional andcompetent source of business information, businessresources, and analytical services for helping individ-uals realize their business dreams.

Mission Statement – The SBDC mission is to pro-vide consulting, training and research to smallbusinesses in pursuit of community economicdevelopment.

Values – The values governing the SBDC’s activitiesinclude:

� Professionalism� Competence� Accuracy of Knowledge� Ethical Conduct� Real Value to Clients

TH E ORGAN I Z AT I ONThe SBDC receives major funding from the U.S. Small BusinessAdministration and the State of Texas, and is not dependent on thegeneral budget from WTAMU. We also receive some additional pri-vate support from local businesses and individuals. The SBDC pro-gram is a true bargain for taxpayers - for every $1 dollar in programfunding received, the SBDC generates $11.37 in new tax revenues tothe state of Texas. There is also a multiplier effect – every $1expended on the SBDC operation was leveraged by $28.19 raised innew capital by clients.

Source – The Chrisman Report

FUND ING

S ERV I C E AR EA

Armstrong

Briscoe

Carson

Castro

Collings-worth

Dallam

Deaf Smith Donley

Gray

Hall

Hansford

Hartley HemphillHutchinson

Lipscomb

Moore

Ochiltree

Oldham

Parmer

Potter

Randall

Roberts

Sherman

Swisher

Wheeler

The designated service area for the SBDC is the top25 counties of the Panhandle. (Childress county isattached to theWichita Falls SBDC.)

While we don’t market our services outside this area,we are free to assist clients in other locations upontheir request.

Service Area

OU TR EACHThe SBDC can send staff to any area of the Panhan-dle and provide all our regular services. We alsomaintain a website with resource links and publish amonthly e-newsletter with business tips and infor-mation about funding sources and training. We reg-ularly provide programs for civic groups throughoutour 25 county service area.

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RE SU LT S

CO L L ABORAT I ONS

SBDC activities are monitored and measured by both the SBAand an independent auditor. Results recorded for Fiscal Year2009 are as follows:

The SBDC makes every effort to coordinate and collaborate with other organizations involved in economic develop-ment. In 2009 we were pleased to work with all of the following:

Amarillo Chamber of CommerceAmarillo CollegeAmarillo EDCAmarillo Hispanic Chamber of CommerceBorger Chamber of CommerceBorger EDCBusiness and Industry Data CenterDumas EDCEnterprise NetworkEntrepreneur Alliance, Inc.

High Ground of TexasPampa Chamber of CommercePerryton CDCPotter County Leadership Advisory BoardTexas Manufacturing Assistance CenterTexas Panhandle Regional Development CorporationTexas Tech Health Sciences CenterTulia High SchoolWest Texas Angel NetworkWTAMU Office of Economic Innovation

METRIC GOAL ACTUAL

Clients Served 340 600

Total Client Hours 2,200 2,363

New Businesses Opened 45 82

New Jobs Created 185 415

New Capital Formed NA $11,733,625

Training Sessions Held 30 57

Training Attendance 600 715

AC T I V I T I E S

ConsultingIndividual consulting is provided to any smallbusiness person on a free and confidential basis,with specialties in the following: Startup Plan-ning, Business Plans, Financial Analysis, BusinessValuation, Financing and Investors, Marketingand Advertising, and Internet Operations.

Manufacturing consulting is available through anarrangement with the Texas Manufacturing Assis-tance Center in Lubbock. TMAC works with man-ufacturers to improve their competitiveness byidentifying opportunities and implementingappropriate solutions.

TrainingThe SBDC conducts seminars and workshopsthroughout the year on a variety of topics such asMarketing, QuickBooks, Payroll Taxes, Bookkeep-ing, and Intellectual Property.

ResearchThe SBDC has access to market researchresources which can be utilized to find theanswer to questions ranging from legal statutesto consumer preferences. Most research is pro-vided free of charge.

DBAsDBAs, or Assumed Name Certificates, are used to make owner-ship information about businesses public. DBAs are filed withthe county and/or Secretary of State. The SBDC provides forms,advice, and notary services for DBA filings, and we publish aninformative booklet which describes the process and answerscommon questions.

ANNUALREP

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701 S Taylor, Ste 118 • Amarillo, Texas 79101Phone: 806.372.5151 • Fax: 806.372.5261

www.wtsbdc.com

Amember of the Texas A&M University SystemAmember of Northwest Texas SBDC Region Network

Funded in part through a cooperative agreement with the U.S. Small Business Administration

The SBDC does not discriminate on the basis of race, color, creed, national origin, ancestry, sex, marital status, disability, religious, or political affiliation, age or sexual orientation.The SBDC is committed to ensuring that its programs and services are available to all persons, including persons with disabilities or needing language assistance. For personsneeding an accommodation to an SBDC program, it is best that we receive your request at least 10 working days before a scheduled event.

Coop agreement # 0-603001-Z0048-24

WTA&M Small Business Development Center 2009 Annual Report

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